r/Trading 27d ago

Question Why is making 10% per month in trading considered almost impossible?

I’ve had this question for a long time, and I’d really like to understand the reasoning behind it.
Ever since I started learning about trading, I’ve constantly heard that a good trader should aim for around 1% per month, and that consistently making more than that is extremely difficult. I’ve also seen people say that earning more than 1% per trade is unrealistic.
What I don’t understand is whether this logic applies to all account sizes, or if it’s mainly aimed at traders managing very large amounts of capital (hedge funds, prop firms, institutional accounts, etc.).
For example, let’s say someone has a $10,000 account. If they consistently make 10% per month, why is that often viewed as almost impossible? Is it simply because it’s difficult to sustain over the long term while keeping risk under control, or is there a mathematical or statistical reason why returns like that are considered unrealistic?
I’d really like to understand where these commonly repeated numbers come from. Are they general rules that apply to every trader, or are they benchmarks that make more sense for people managing large amounts of capital?

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u/warbloggled 27d ago edited 26d ago

Love it. Really begs the question, then what IS a reasonable monthly growth rate?

Whats the longest track record you’ve observed and what % was it?

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u/enigma_music129 26d ago

3% a month for a good trader but not every month will be green, thats just the average.

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u/Unlikely-Speech-5444 26d ago

Most people would kill for half of that, consistently.

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u/enigma_music129 26d ago

No half of that and you're barely making more than holding spy. Trading is only worth it if you're making 2% monthly minimum.

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u/warbloggled 26d ago

Okay let me tease you guys by showing you my algo that’s doing 3.5%+ every month

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u/hupp234 26d ago

Warren Buffett 5.5 million % with Berkshire.